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OpenAI counters Musk’s trade secret lawsuit, demanding xAI cover millions in legal fees after claiming it filed first
Bloomberg reports that OpenAI has petitioned a judge to dismiss xAI’s trade secret theft lawsuit as baseless, demanding that Elon Musk’s company pay more than $1 million in legal costs. This motion follows xAI’s announcement that it plans to appeal its repeatedly dismissed claims, signaling a prolonged legal battle.
OpenAI secured two dismissals, arguing that xAI lacked any substantive proof.
In court filings, OpenAI’s legal team argued that xAI filed suit before gathering evidence, compelling OpenAI to expend significant resources defending against unsupported trade secret allegations. A San Francisco federal judge initially dismissed the case in February, noting that xAI failed to demonstrate any misconduct by OpenAI, despite eight former xAI employees joining OpenAI around the same period.
xAI subsequently requested a six-month extension to bolster its case, which was denied. After filing an amended complaint in March, Judge Lin Ping dismissed the lawsuit again in June, ruling that xAI’s new allegations attempted to frame standard hiring practices—such as asking new hires about their prior work—as malicious inducement to steal trade secrets.
While Apple’s legal action has just begun, OpenAI faces a critical juncture ahead of its IPO.
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Bloomberg reports that OpenAI has petitioned a judge to dismiss xAI’s trade secret theft lawsuit as baseless, demanding that Elon Musk’s company pay more than $1 million in legal costs. This motion follows xAI’s announcement that it plans to appeal its repeatedly dismissed claims, signaling a prolonged legal battle.
OpenAI secured two dismissals, arguing that xAI lacked any substantive proof.
In court filings, OpenAI’s legal team argued that xAI filed suit before gathering evidence, compelling OpenAI to expend significant resources defending against unsupported trade secret allegations. A San Francisco federal judge initially dismissed the case in February, noting that xAI failed to demonstrate any misconduct by OpenAI, despite eight former xAI employees joining OpenAI around the same period.
xAI subsequently requested a six-month extension to bolster its case, which was denied. After filing an amended complaint in March, Judge Lin Ping dismissed the lawsuit again in June, ruling that xAI’s new allegations attempted to frame standard hiring practices—such as asking new hires about their prior work—as malicious inducement to steal trade secrets.
While Apple’s legal action has just begun, OpenAI faces a critical juncture ahead of its IPO.
Gemini Spark now manages Google Photos library
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As digital transformation accelerates, Lenovo has introduced the new AI Desktop 300, designed specifically for small and medium-sized businesses and solo professionals. Available on e-commerce platforms starting June 18th at 26,999 yuan, this system
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2026 Latest Best Top-rated AI Multilingual Voice Tools for Global Content are here on XIX.AI! This curated list features powerful, game-changing options that deliver flawless speech in dozens of languages, perfect for creating high-quality content fast and boosting writing efficiency across global markets. Get a free vs paid comparison along with real-world tests and our updated weekly rankings to help you find the must-try tool that suits your needs. Explore now to unlock your AI edge!
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